Healthcare Analytics Market

Global Healthcare Analytics Market Size (2022 to 2027)

The global healthcare analytics market size is expected to reach USD 34.74 billion by 2027 from USD 11.2 billion in 2022, growing at a CAGR of 25.41% during the forecast period.

Some of the key insights from the report:

• Based on type, the descriptive analysis segment had a significant global market share of 36.07%  in 2021.
• Based on application, the largest healthcare analytics market share of 37% was held by financial analytics in 2021.
• North American healthcare analytics market dominated the global market in 2021 and is anticipated to be worth 11.33 billion by 2027.
• Asia pacific healthcare analytics market showcased the highest growth and is projected to grow with a CAGR of  27.69% during the forecast period.

MARKET DRIVERS:

Factors such as the rapid adoption of the latest technologies and the implementation of new healthcare devices are driving the demand for the global healthcare analytics market.

Increasing venture capital investments and healthcare spending, growing R&D activities, improving patient comes, and the introduction of big data in healthcare influence the growth of the global healthcare analytics market. Furthermore, the investment expenditure on healthcare, particularly in urban areas with increasing disposable income, boosts market growth. In addition, adopting analytics for sales and marketing applications, increasing the widespread chronic diseases, and growing pressure to minimize healthcare expenditure is expected to promote the growth rate of the healthcare analytics market during the forecast period. However, adopting big data applications in healthcare and ensuring standardization in numerous internal processes while accommodating regulatory needs further accelerates the growth of the healthcare analytics market. Furthermore, increasing demand to reduce healthcare costs, including medical product defects and damages associated with inefficient hospital workflows, is expected to grow big data in the healthcare sector. As a result, the digitization of healthcare data is also one of the notable drivers of the global healthcare analytics market.

The tremendous growth of patient data in the global healthcare system provides a strong foundation for healthcare analytics needs. The need to improve healthcare decisions with insights backed by global data drives healthcare analytics adoption. However, the global healthcare analytics market is deteriorating with the increasing use of analytical tools to reduce the performance gap in healthcare delivery systems. The tremendous potential of the healthcare analytics process and strategy can help stakeholders better assess public health priorities and make credible, data-driven healthcare decisions to fuel market growth. In addition, insights from healthcare analytics can help improve relationships between caregivers and healthcare providers, including insurance providers. Therefore, adopting healthcare analytics tools and strategies is a valuable claim. Good potential healthcare analytics for national preventive health strategies and plans drives their adoption in developed countries. The digitization of healthcare systems, especially in growing regions, is fuelling the market demand for healthcare analytics. The growing popularity of big data analytics in healthcare transformation in developing and developed countries has contributed significantly to the growth of the healthcare analytics market.

Impact of COVID-19 on the global healthcare analytics market:

COVID-19 was declared a pandemic by the world healthcare organization in March 2020. It has affected all the sectors across the globe. The healthcare industry is benefited from the pandemic. The healthcare analytics market faced a downfall in the earlier stage of COVID-19 because of the lockdown and travel ban.  The healthcare industry shares mass health-related information using various platforms. It is essential to store patients' information during the pandemic to analyze patient conditions and promote better treatment procedures. Thus, the pandemic has positively impacted the demand for this market. Hence, the market is expected to have better further growth.

REPORT COVERAGE:

This research report on the global healthcare analytics market has been segmented and sub-segmented into the following categories, evaluated the market size, and forecast until 2027.

Healthcare Analytics Market - By Type:

• Predictive Analytics
• Descriptive/Retrospective Analytics
• Prescriptive Analytics

Based on type, the predictive analytics segment led the healthcare analytics market in 2021. Increasing expenditure on healthcare with the rise in disposable income is leveraging the market's growth. In addition, the growing prevalence of effective treatment procedures at any cost is likely to broaden the market's need.

Healthcare Analytics Market - By Application:

• Financial Analytics
• Clinical Analytics
• Operational & Administrative Analytics

Healthcare Analytics Market - By End User:

• Public Health Systems
• Healthcare Providers
• Private Healthcare Providers
• Monitoring Agencies
• Health Insurance Companies
• Clinical and Medical Research Bodies
• Technology Vendors

Public health systems end-users occupied the leading share of the healthcare analytics market in 2021. The growing prevalence of quality diagnosis and treatment procedures at any cost, especially in urban areas, is fuelling the growth of the healthcare analytics market.

Healthcare Analytics Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East and Africa

Regionally, the North American healthcare analytics market accounted for a significant share of the global market in 2021 due to the quick adoption of the latest technologies and various healthcare sector applications. Furthermore, the growing demand for better techniques that are convenient and accurate in completing tasks is boosting the market's need. In this region, the U.S. is leading, followed by Canada.

The Europe healthcare analytics market follows North America, holding a substantial global market share. Increasing capital income in both developed and developing countries is accelerating the growth of the healthcare analytics market. In addition, the rise in government initiatives to accept electronic health records in hospitals promotes market growth.

The Asia Pacific healthcare analytics market has had a tremendous growth rate over the past decade with an increasing population. In addition, increasing disposable income in urban areas is expanding the growth rate of the healthcare analytics market in this region. 

The Latin American healthcare analytics market size is projected to be USD 2.03 billion by 2027.

The healthcare analytics market in the MEA region is estimated to grow at a CAGR of 18.95% from 2022 to 2027.

KEY MARKET PARTICIPANTS:

A list of notable companies playing a promising role in the Global Healthcare Analytics Market is SAS Institute Inc., McKesson, Optum Inc., IBM Corporation, Truven Health Analytics Inc., Cerner Corporation, Verisk Analytics Inc., Allscripts Health Solutions, Oracle Corporation, MedeAnalytics Inovalon Inc., and Health Catalyst.

RECENT MARKET DEVELOPMENTS:

• On the other hand, emerging markets are expected to grow due to a surge in government spending on healthcare infrastructure. In addition, as a result of the transition from paper charts to real-time monitoring systems, integrating big data and electronic health records to collect patient health data will merge the industry.
• IBM acquired Truven Health Analytics for approximately $ 2.6 billion to enhance IBM Watson Health's business portfolio and expand its customer base.
• Medtronic plc and its strategic technology partner, IBM Watson Health, 2018, announced the commercial application of Sugar.IQ Intelligent Diabetes Assistant
• In April, Inovalon launched two new products on the Inovalon ONE (TM) platform. Clinical data extraction as a service (CDEaaS) and natural language processing as a service (NLPaaS).
• In 2017, VitreosHealth unveiled a powerful digital membership engagement solution powered by AI. This digital engagement service extends care management's reach to more patients at the right time.
• McKesson Specialty Health and CoverMyMeds (a division of McKesson Corporation) launched ExpressCoverage in 2018. It is an integrated eServices platform designed to improve patient care processes.